050806 EDA
- Official File Copy -
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
May 8, 2006
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Martin Opem Sr.
Commissioner Mary Gwin-Lenth
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of April 24, 2006
4. Resolution authorizing a third amendment to the interim agreement bet\veen the
Economic Development Authority in and for the city of New Hope and PariPassu
Development for the redevelopment of the Bass Lake Road Apartments site, \"!hich
increases the budget for fees for Krass Monroe, P.A. (improvement project no. 795)
:). Adjourl1ffient
CITY OF NEW HOPE
4401 XYLON A VENUE NORTH
NEW HOPE, 1vIINNESOTA 55428
EDA Minutes April 24, 2006
Regular Meeting City Hall
CALL TO ORDER President Opem called the meeting of the Economic Development Authority
to order at 10:03 p.m.
ROLL CALL Present: Martin Opem Sr., President
Mary Gwin-Lenth, Commissioner
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
Staff Present: Dan Donahue, City Manager
Kim Green, Community Development Assistant
Curtis Jacobsen, Community Development Specialist
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Kirk McDonald, Director of Community Development
Steve Sondrall, City Attorney
Vince VanderTop, Assistant City Engineer
APPROVE MINUTES 1\1otion was made by Commissioner Gwin-Le11th, seconded by Commissioner
Hoffe, to approve the Regular Meeting Minutes of March 27, 2006. All
present voted in favor. Motion carried.
IMP. PROJECT 795 President Opeffi introduced for discussiol1 Item 4, Resolution authorizing the
Item 4 second extension of the interim agreement with PariPassufTrio Development
for the redevelopment of the Bass Lake Road Apartments site (8400 and 8420
Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project
no. 795).
Ms. Kim Green, community development assistant, explained tl1at on 11arch
27, 2006, the EDA authorized the exte11sion of the agreement from March 28,
2006, to April 30, 2006. She stated staff has been n1eeting \vith the
developrne11t team to discuss possible approaches to improving the pro-forma
for the project. Ms. Green explained that in order to continue negotiations
wit11 PariPassu/Trio Development, staff recommends extending the agreement
to June 30, 2006.
President Opeffi commented that the extension should alIo\"! more than
adequate time for the developer to finalize the financial data.
EDA Meeting
Page 1 April 24, 2006
Mr. Dan Donahue, city manager, informed the EDA that he is arranging a
meeting between the county commissioner, Mayor Opem, and himself. He
stated his intentions of discussing the city's needs as it relates to the Transit
Oriented Development (TOD) grant which will be reviewed for the first time
by the County HRA on May 9, 2006.
Commissioner Sommer stated the city expects fair market price for the
property and grant funds will be used by the city to reduce the amount of tax
increment financing. He emphasized that grant funds V\rill not be given
directly to the developer to improve the project cash flow.
President Opem commented that at t11e last meeting with the developer there
was an $800,000 gap. He stated the developer has been asked to modify the
project proposal to allow for a reduced financial contribution from the city. He
pointed out that there are intrinsic benefits of redeveloping the property. He
noted the city is much closer to a viable project than it was tvvo years ago.
EDA RESOLUTION Commissioner Nolte introduced the following resolution and moved its
06-03 adoption: "RESOLUTION AUTHORIZING THE SECOND EXTENSION
Item 4 OF THE INTERIM AGREEMENT WITH P ARIP ASSU/TRIO
DEVELOPMENT FOR THE REDEVELOPMENT OF THE BASS LAKE
ROAD APARTMENTS SITE (8400 AND 8420 BASS LAKE ROAD AND
8401, 8411, AND 8421 58TH A VENUE) (IMPROVEMENT PROJECT NO.
795)." The motion for the adoption of the foregoing resolution was seconded
by Commissioner Gwin-Lenth, and upon vote being taken thereon, the
following ,rated in favor thereof: Opem, G\vin-Lenth, Hoffe, Nolte, Somnler;
and the following voted against the same: None; Abstained: None; Absent:
None; "\vhereupon the resolution was declared duly passed and adopted;
sigl1ed by t11e president which "\'Vas attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Nolte, seconded by Commissioner Hoffe,
to adjourn the meeting. All prese11t voted in favor. Motion carried. The
New Hope EDA adjourned at 10:15 p.m.
Respectfully submitted,
~~
Valerie Leone
City Clerk
EDA Meeting
Page 2 April 24, 2006
EDA
Request for Action
Originating Department Approved for Agenda Agenda Section
Community Development (/ May 8, 2006 EDA
Item No.
By: Kirk McDonald, CD Director
BYi \ ,i 4
Kim Green, CD Assistant i /
\
Resolution authorizing a third amendment to interim agreement between the Economic Development
Authority in and for the city of New Hope and PariPassu Development for the redevelopment of the Bass
Lake Road A artments site, which increases the bud et for fees for Krass Monroe, P .A.
Requested Action
Staff requests the Economic Development Authority (EDA) approve a resolution authorizing an amendment
to the interim agreement with the preferred redeveloper for the Bass Lake Road Apartments siteJ PariPassu
Development vvrnch increases the Krass Monroe consultant expenses by $10,000. On April 24 2006, the EDA
authorized the second extension of the term of the agreement from April 3D, 2006, to June 30, 2006, but the
consultant expenses have not been increased to reflect the two term extensions of the original agreement. If
t11e EDA desires to continue negotiations with PariPassu Development, staff requests the EDA authorize an
amelldment to the agreement to increase Krass MOlioe consultant expenses by $10,000. TIle $10,000 would be
shared 50/50 betvveen the redeveloper and tl1.e city. All other conditions in the interim agreement remain
uncharlged.
Policy/Past Practice
Priority goal number two emphasizes the maintenance and redevelopment of commercial and residential
properties. To assist with this goat the city can select a preferred redeveloper and participate in a
redevelopment agreement for the redevelopment of a site in the city.
Background
011 November 28, 2005, the EDA approved a resolutioll for a 120-day exclusive negotiation period 'VVitll
PariPassu Development for the redevelopment of the Bass Lake Road Apartments site. PariPassu was 011e of
three development teams that participated in a redeveloper selection process, which beg'an in the spring of
2005. Following a month of discussions, the EDA and the redeveloper entered into an interim agreement,
effective January 9, 2006, which identifies how the preliminary redevelopme11t costs and responsibilities are
shared betvveen the ci and the redevelo er durin the ne otiation eriod.
-. .-4
Motion by Second by /U/
To:
I: \RFA \ PLANNING \ Livable Communities \ Bass Lake Road Apts \ Q & R- BLR update 5-8-2006.doc
Request for Action, Page 2 of 3
May 8, 2006
On March 27, 2006, the EDA authorized the extension of the term of the interim agreement from March 30 to
April 30, 2006, to provide additional time to review project details with the redeveloper. On April 24, 2006, the
EDA authorized a second extension of tPe term of the interim agreement to June 30, 2006. As described in the
attached correspondence from Krass Monroe, the consultant expenses have not been increased to reflect the
tvvo term extensions of the original interim agreement. The original agreement capped the financial
consultant expenses at $15,000 ($7,500 each) and that amount has been expended. If work is to continue on the
project, additional funding is necessary. Staff is recommending an increase of up to $10,000 in fees for Krass
Monroe's services, which would be shared 50/50 between the redeveloper and the city. It is anticipated that
the additional authorized funds will be adequate to finalize the preliminary financial analysis and prepare a
draft term sheet.
Funding
The additional consultant fees would be paid for with EDA funds.
Recommendations
Staff recommends the approval of the attached resolution authorizing an amendment to the interim
agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassu Development,
which increases the budget for fees for Krass Monroe by $10,000. The redeveloper has agreed to share this
cost with the city, so each party would be responsible for $5,000 of expenses.
Attachments
1. Resolution
2. Krass Monroe Memo
3. Copy of original interim agreement, effective January 9, 2006
4. First Amendment to Interim Agreement
5. Second Amendment to lilterim Agreement
6. Third Amendment to Interim Agreement
ECONOMUCDEVELOPMENTAUTHORITY
IN AND FOR THE CITY OF NEW HOPE
COUNTY OF HENNEPIN
STATE OF MUNNESOTA
RESOLUTION NO.
A RESOLUTION AUTHORIZING A THIRD AMENDMENT TO THE
INTERIM AGREEMENT BETWEEN THE ECONOMUC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF I\TEW HOPE Al\1]) P ARIP ASSU
DEVELOPMENT FOR THE REDEVELOPMENT OF THE BASS LAKE
ROAD APARTMENTS SITE, WHICH INCREASES THE BUDGET FOR
FEES FOR KRASS MONROE, P.A.
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope (the "Authority") as fol1o\vs:
Section 1. Recitals.
1.01 The Bass Lake Road Apartment site (the "Site") consists ofapproxiluately 3.6 acres
of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th
Avenue. The Site currently consists offi"ve 12-unit rental apartment buildings.
1.02 The City plans to redevelop the Site into for-sale multi-family housing.
1.03 On NO\Tember 28, 2006, the Authority authorized a 120-day exclusive negotiation
period with the PariPassu Development (the "Redeveloper") to refine the site plan and examine tile
econolnic feasibility of redeveloping the Site.
1.04 Pursuant to that resolution, the Authority and the Redeveloper entered into an Interim
Agreement effective as of January 9, 2006 and expiring March 28, 2006, setting forth responsibilities
and deadlines for each of the parties.
1.05 As requested by the Redeveloper, on tvvo occasions the Interilll Agreement was
extended (expiring June 30, 2006) so that the Authority and Redeveloper could continlle to vvork on
proj ect feasibility.
1.06 The Authority and the Redeveloper desire to continue to use the services of Krass
Monroe to negotiate/a term sheet through the term of the Agreement; however, the projected budget
outlined in tile Agreement for fees of Krass Monroe, P .A. of $15,000 has be~n reached;
. 1.07 The Authority and the Redeveloper desire to increase the budget for fees of Krass
Monroe by $10,000;
Section 2. Findin1!s.
2.01 The Authority hereby finds that the redevelopment of the Site and extension of the
Interim Agreement promotes the objectives outlined in its Restated Redevelopment Plan for
Redevelopment Project No.1 established pursuant to Minnesota Statutes, Section 469.001 et seq.
Section 3. Authorizations.
3.01 The Authority hereby approves execution and delivery of a Third Amendment to
Interim Agreement increasing the budget for fees for Krass Monroe, P.A. by $10,000.
3.02 The President and Executive Director are hereby authorized to execute and deliver the
Third Amendment in substantially the form presented to the Authority, with such additions and
modifications as those Officers may deem desirable or necessary as evidenced by their execution
thereof.
Adopted by the Authority this 8th day of May, 2006.
Martin Opem Sr., President
ATTEST:
Daniel J. Donahue, Executive Director
G:\COMMDEV\KIM\BASS LAKE ROAD APARTMENTS 2005\PREFERRED o EVELOPER\RESOL (EDA) INCREASING KRASS MONROE BUDGET. DOC
I(t.1 KRASS
MONROE
James R. Casserly
jcasserly@krassmonroe.com
Direct 952.885.1296
MEMORANDUM
To: City of New Hope
Attn: Kirk McDonald, Community Development Director
Attn: Daryl Sulander, Director of Finance
From: James R. Casserly, Esq.
Date: April 27, 2006
Re: BLR Apt/Golf Course Site
Our File No. 10048-19
Attached please find our invoice for time through March 22, 2006. In preparing this
invoice it has come to our attention that we will soon exceed the estimated amount of
our fees that were to be shared between the City and PariPassu.
As you recall, this was an estimated amount and that the Interim Agreement with
PariPassu was to conclude March 28, 2006. The Interim Agreement has been
extended twice, now to June 30, 2006, to allow both parties an opportunity to determine
if the proposed project is financially feasible. We have done extensive financial
analysis, reviewed multiple pro formas and have attended numerous negotiating
sessions as well as separate conferences with City staff and work sessions with the City
Council.
We continue to believe that this project can work. Additional time is necessary to work
through revised pro formas, cash flows and assumptions to analyze potential savings.
Not only is there additional financial analysis necessary, but we must conclude a term
sheet that is acceptable to both the City and PariPassu. Term sheet negotiations are
frequently arduous because the parties are really attempting to conclude the business
terms. Given these assumptions and our many years of experience in negotiating these
transactions, we estimate that there will be approximately $10,000 of additional time
necessary to conclude a term sheet and meet the June 30,2006 deadline.
Please let me know if you need further information. Again) thank you for giving us the
opportunity to work with the City on this project. It is an exciting project as well as a
very challenging one.
JRC/jlt ~.
G:\WPDA T A\N\NEW HOPE\ 19\COR\MCDONALD SULANDER JRC.DOC
8000 Norman Center Drive, Suite 1000
Minneapolis. Minnesota 55437-1178
TEL 952.885.5999 FAX 952.885.5969
W w W . k r ass moon roe . com
. .
Bass Lake Road Redevelopment Cost Sharing
28-Apr-06
Budget
Authorized Invoice date Invoice # City Pari Passu Total pd.
Boundry survey 02/20/2006 127591 1,222.82 1 ,222.81 2,445.63
Boundry survey 03/16/2006 128321 1,280.32 1,280.32 2,560.64
Bonestroo Total 5,000 5,006.27
Soil borings- Braun 3,500
Phase 1- Braun 1,700
LHB- TIF/Blight 2/7/2006 1 1,086.28 1 ,086.29 2,172.57
LHB- TIF/Blight 3/8/2006 2 2,879.57 2,879.58 5,759.15
LHB- TIF/Blight 4/12/2006 3 317.96 317.96 635.92
LHB total 9,000 8,567.64
Krass Monroe 1/24/2006 77497 2,482.57 2,482.56 4,965.13
Krass Monroe 2/21/2006 78260 464.38 464.37 928.75
Krass Monroe 3/17/2006 78924 1,865 1,865.00 3,730
Krass Monroe 4/27/2006 79894 2,682.10 2,682.10 5,364.20
KM Total 15,000 14,988.08
Total 14,281.00 14,280.99 28,561.99
~ n :V-I J /er / D fa
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INTERIM AGREEMENT
This mTERTIv1 AGREE11ENT entered into effective the 9th day of January, 2006 by and
between the Economic De'lelopment Authority in and for the City of New Hope, Minnesota, a
Minnesota public. body corporate and politic (the "Authority") and PariPassu Development
Corp., a Minnesota corporation (the "the Redeveloper").
\VHEREAS, following Boisclair Corporation's vvithdrawal of its proposal in January
2005, in March 2005 the Authority distributed requests for proposals and hosted a developers'
roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project");
WHEREAS, several candidates submitted responses and, over the summer, the
candidates met vvith City and Authority staff and discussed plans for the Project at the July 18,
2005 City Council meeting;
\VHEREAS, several development teams submitted proposals to the City, which were
pr,eseIited to City Council on September 19 and October 10, 2005;'
\VHEREAS, at its meeting on November 28, 2005, the Authority authorized a four-
month exclusive negotiation period vvith the Redeveloper to conduct environmental and other
due diligence, determine Proj ect feasibility and develop a preliminary concept plan;
NOW, THEREFORE, in consideration of the premises and mutual obligations of the
parties contained herein, each of them does hereby agree as follows:
1. Interim Nature of Agreement. The Authority and the Redeveloper agree that this
Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper
can make a decision on whether to proceed with the Project, it will be necessary to assemble and
consider information relating to the economics, site assembly, phasing, environmental
remediation and other aspects of the Proj ect. The purpose of this Agreement is to allow the
Redeveloper an opportunity to assemble such information, to p"repare a preliminary concept plan
and to negotiate vvith the Authority concerning the approval of a term sheet (the "Term Sheet")
with a view to eventual exeqution of a contract for private redevelopment (the ''Redevelopment
Agreement") which will set forth the rights and responsibilities of the Authority and the
Redeveloper vvith respect to the Proj ect
2. Undertakin9:s of the Redeveloper.
(a) By January 31,2006 the Redeveloper will:
lit' Conduct a Phase I environmental assessment ofllie site.
8_ Complete any soil borlngs and other environmental assessment
v
needed to estimate the cost of required environmental remediation
and soil corrections necessary to complete the Proj ect.
(b) From the date hereof through March 28, 2006 the Redeveloper will:
. In consultation with the Authority, the City and City residents,
develop a preliminary concept plan.
. Wark with the Authority's redevelopment consultants to analyze
preliminary economic feasibility.
CD Present monthly progress reports to City CounciL
. Negotiate the Term Sheet with the Authority.
.., Undertakings of me Authority.
.:).
(a) The Authority agrees to cooperate with the Redeveloper in the
Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will
not negotiate with any third party in connection with redevelopment of the site.
(b) The Authority will take th~ following actions:
.. By January 31, 2006, determine at least on a preliminary basis
vvhether the blight test for a redevelopment district is likely to be
met.
$I By March 28, 2006, determine the Authority's and the City's
willingness to allow a density that maximizes the financial feasibility
of the Project that is consistent with market conditions.
. Through March 28, 2006, negotiate the Term Sheet with the
Redeveloper.
8: On an ongoing basis, explore grant opportunities and other funding
sources.
4. Redeveloper Deposit: Cost Sharing.
(a) During the term of this Agreement, the Authority shall pay the fees and
costs of its planning consultants, Northwest Associated Consultants; its engineering consultants,
Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sondrall, P .A. The
Redeveloper shall pay the fees and costs of its consultants.
i 2
(b) The Authority and Redeveloper agree to split the following costs equally:
(i) Fees incurred after December 9, 2005 by the Authority's
redevelopment counsel, Krass Momoe, P .A., for financial and
proj ect feasibility analysis, review of blight analysis, review of site
qualification for inclusion in a tax increment district and drafting
and negotiation of a term sheet, and
(ii) Preliminary redevelopment expenses including environmental
analysis, soil borings, blight analysis, boundary survey and other
expenses that the parties agree shall be subject to cost sharing.
The projected budget for these costs is as follows:
Description Projected Amount
/
Phase I environmental assessment ............................ $ 1,700
.-It '1 b · 3,500
~ 01 onngs. . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .
Blight an.alysis...................................... .-.................... 9,000
Boundary and topa survey and golf course
top 0 survey............................................................. 5,000
Fees of Krass Monroe, P .A. ................ not to exceed 15,000
(c) Upon execution of this Agreement, the Redeveloper shall pay a non-
refundable fee of $500.00 to the Authority. The Redeveloper shall also make an initial deposit of
$5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the
Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit
when the balance falls below $1,000.00 upon r~quest by the Authority. The Authority will
reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to
this Paragraph 4.
(d) Before either party incurs expenses of the type set forth in subparagraph
(b ) (ii) above, such party shall provide to the other a copy of the contract with the service
provider (or, in the absence of a contract, a statement of the scope and'terms of the engagement)
and a statement of the projected fees involved. Both parties must approve expenses prior to their
being incurred.
(e) In accordance with City policy, following approval of the r'erm Sheet by
the Authority, the Redeveloper will pay all normal and customary City and Authority costs
associated with the plan review and approval process.
5. City and Authority Use of Wark Product. The Redeveloper shall make available
at no cost to the City and the Authority for their urlrestricted use all available non-proprietary
work product, including market analyses, soil and engineering reports, geotechnical reports,
infrastructure construction budgets and other documentation produced specifically for the site.
3
IN WITl'i'ESS WHEREOF, the parties have caused this Agreement to be duly executed in
each of their names as of the date first above \Vritten.
G:\ WPDA T A \J'.,~NEW HOPE\19\DOC~7ERnvr AGREE V3 .DOC
ECON011IC DEVELOP11ENl AUTHORITY
IN AL'ID FOR THE CITY OF i\1EW HOPE, MINNESOTA
By: :7J1McLJ1!=~~_~
res ent '
By:
Authority Signature Page - Interim Agreement
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FIRST AMENTIlvIENT
TO
JNTERW AGREElvIENT
THIS AGREElvIENl (the "First Amendment") is entered into effective the :2 7 day of
March, 2006 by and between the Economic Development Authority in and for the City of New
Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu
Development Corp., a Minnesota corporation (the "the Redeveloper").
WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated
effective January 9, 2006 (the "Agreement");
WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the
purposes set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, the parties hereby agree as follows:
The term of the Agreement is extended to April 30, 2006, and the date of April 30,2006
shall be substituted for the date of March 28, 2006 everywhere that the latter date appears in the
Agreement.
IN WITNESS WREREOF, the parties have caused this Agreement to be dilly executed:in
each of their names as of the date first above written.
ECONOlYllC DEVELOPIv1ENl A1JTHORITY
IN AJ.'ID FOR. urn CITY OF NEW HOPE, N.rrn""N-.ESOTA
r
1.11.'~ 1 Cl I J
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By: 1/.~1i,_J:/l.l;~ '~
, IFfresident (J'
By: .
P ARlP ASSU DEVELOP11ENT CORP.
By: :;:;~.:l:Z-
Its:~ ~p;:f c::. ,"-"t:- ~ ~/.2. 'T/Z,;'I:-,t..,
G:\WPDATA\N\NEW HOPE\19\DOC\FIRST AMENDMENT TO INTERIM AGREE V1.DOC
. .
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SECOND AMENDMENT
TO
INTERTh1 AGREEMENT
THIS AGREE11ENT (the "Second Amendment") is entered into effective the 24th day of
. April, 2006 by and between the Economic Development Authority in and for the City of New
Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu
Development Corp., a Minnesota corporation (the "the Redeveloper").
WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated
effective January 9,2006 (the "Agreement");
WrlEREAS, the Authority and the Redeveloper authorized the First Amendment to the
agreement dated effective March 27, 2006 (the "First Amendment");
WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the
purposes set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, the parties hereby agree as follows:
The term of the Agreement is extended to June 30, 2006, and the date of June 30, 2006
shall be substituted for the date of March 28, 2006 or }\.pril 30, 2006 everywhere that the latter
tvvo dates appears in the Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in
each of their names as of the date first above written.
ECON011IC DEVELOPMENT AUTHORITY
IN" A-"ND FOR THE CITY OF NEW HOPE, M1}\JNESOTA
By: -
fA ~ L
By: ,. r.; .~ 'vYLh"
.. Executive Director --
P ARIP ASSU DEVELOPMENT CORP.
By: /y~;Z Z.
-
Its: P rtT '" {,:::;: P b'{'-
G:\CommDev\Kim\Bass Lake Road Apartments 2005\Preferred Developer\Second Amendment to Interim Agree vI.doc
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THIRD AMENDMENT
TO
INTERIM AGREEMENT
THIS AGREEMENT (the "Third Amendment") is entered into effective the 8th day of
May, 2006 by and between the Economic Development Authority in and for the City of Ne\v
Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu
Development Corp., a Minnesota corporation (the "the Redeveloper").
WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated
effective January 9, 2006 (the "Agreement");
WHEREAS, the Authority and the Redeveloper authorized the Second Amendment to the
agreement dated effective April 24, 2006, (the "Second Amendment"), which extended the term
of the Interim Agreement to June 30,2006;
WHEREAS, the projected budget for fees of Krass Momoe, P.A. of $15,000 has been
reached;
WHEREAS, the Authority and the Redeveloper desire to continue to use the services of
Krass Momoe to negotiate a term sheet;
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties l1ereto, the parties hereby agree as follows:
The budget for fees of Krass Monroe, P .A., as outlined in the Agreement, is increased by
$10,000.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in
each of their names as of the date first above written.
ECONOMIC DEVELOPMENT AUTHORlTY
IN AND FOR THE CITY OF NEW HOPE, MINNESOTA
By:
President
By:
Executive Director
P ARIP ASSU DEVELOPMENT CORP.
By:
Its:
G:\COMMDEV\K1M\BASS LAKE ROAD APARTMENTS 2005\PREFERRED DEVELOPER\THIRD AMENDMENT TO INTERIM
AGREE V1.DOC
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